4 Factors That May Dilute The Value Of Your Property
You applied all your mathematical genius before you were convinced that the property is worth every penny. The best-quality material was used to construct the unit, no pipes were leaking, all electricity boards were working fine, the doors were not making any creaky noises, etc. By the look of it, you will secure double the price if you decided to sell it after five years, you think. You may be mistaken if you thought only the interiors of a house would decide its future value. What happens outside is of equal importance. And, no, we are not just pointing out about the locality. There is more to it.
Ongoing developments work both ways
You bought your home in a yet-to-be developed area hoping for a grand appreciation in value at a later stage. Reports confirmed the area will soon have a Metro link. If fortune decides to smile upon you, chances are the area will be selected for developing another airport. Without questioning the fact that all these future developments would increase the property value, it is safe to say years of digging and related construction activities would not make for a fine site to live in. If you have to sell the property at a time when the work is in progress, you may find it difficult to sell it a price of your choice.
What else can muddy the waters?
How beautiful would it be to have a sea-facing property? You could not ask for more! But then, there is a price to pay for this, and, mind you, it would not be the money you will shell out to buy the property. Apart from the fact that your electronic items would wear out faster if you live in a sea-facing home, your health care expense will shoot, too, in case you suffer from some respiratory issues. The upkeep of such a property would certainly be much higher than a property in the plains.
What's in a name?
You have not been able to find any takers for your beautiful house that should bring you good money because of its sheer beauty for the locality has, by some unfortunate play of events, earned itself a bad name. For instance, the area is not considered safe. When you bought the property, you were hopeful things will improve. And then it came cheaper, too. Now as a seller, you would find it extremely difficult to find like-minded optimists who would buy your property without paying much attention to the security factor. You might have to sell the property for much less than it deserves.
Who is your neighbour?
Even if we do not have time for our neighbour in our busy city lives, we are ever mindful of the fact who lives next to us. If you live in a plush home of a tony neighbourhood where informal settlements have mushroomed, you would see the value of the property decline, by and by. The seller eventually has to compromise on the asking price of such properties.
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